REPUBLIKA.CO.ID, PURWAKARTA -- Industry Minister Saleh Husin inaugurated PT Furukawa Indomobil Battery Manufacturing (FIBM), a car battery production plant in the Bukit Indah Industrial Zone here on Thursday.

The FIBM is a joint venture between Furukawa Battery Company of Japan and Indomobil Group of Indonesia, with 51 percent of the share with the Japanese company and 49 percent with the Indonesian company.

The factory, with an investment of Rp600 billion, sits on a 66 thousand-hectare plot of land and will employ some 400 workers. The manufacturing plant will commence commercial production in April 2015.

"The investment is very meaningful for Indonesia's economy, not only because it will employ a significant number of workers but it will also utilize the local resources, including raw material suppliers and local components. Thus, it will reinforce the structure of the national automotive industry," the minister stated.

Minister Saleh Husin is also convinced that the establishment of the Furukawa Battery factory in Purwakarta will reduce dependence on imports.

FIBM President Director Shunji Ishizaki stated that the factory has a production capacity of over one million units per year. It will focus on meeting the domestic demand for batteries rather than exports.

"With dynamic growth in the Indonesian economy, the domestic market has great potential, especially in supporting the people's need for quality batteries as the main supporting component of motor vehicles," he affirmed.

He noted that the demand for automotive components in Indonesia is the highest in Asia. Thus, focusing on the local market is necessary.

Indonesia is the second country in Southeast Asia after Thailand to become a production center for Furukawa Battery products.

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